PT Telkom Indonesia (Persero) Tbk (Telkom) has established a strategic partnership with Singtel to strengthen its digital business.
With this partnership, PT Telkom Indonesia strengthens its capacity and capability to accelerate the development of the digital ecosystem, the company said in a statement. This initiative was realised by signing a Memorandum of Understanding (MoU) between Telkom’s President Director, Ririek Adriansyah, and Singtel Group CEO, Yuen Kuan Moon, witnessed by SOE Minister Erick Thohir at the SOE Ministry.
Also present to witness at the Ministry of SOE (State Owned Enterprise), the Vice Minister of State-Owned Enterprise II, Kartika Wirjoatmodjo, and Telkomsel’s President Director, Hendri Mulya Syam. Two Memorandums of Understanding were signed, namely collaboration for regional data centre business development and integration of fixed and mobile broadband services, also known as Fixed Mobile Convergence (FMC).
Need for DC’s
In the digital era with rapid technological developments, the need for data centres is estimated to remain in growth for the next few years. Southeast Asia is projected to be the fast-growing data centre business with an annual growth rate of 20 per cent until 2024.
So Telkom is looking to seize this data centre business opportunity. In his remarks, the Minister of SOE Erick Thohir said that as a State-Owned Enterprise that is transforming into a digital telecommunications company, Telkom must be able to develop technological leadership to provide the best service for customers in Indonesia and participate in guiding Indonesia’s digital transformation. It requires various breakthroughs in increasing digital competence and changing business models by utilizing strategic partnerships to accelerate the company’s transformation.
The increase in data centre market share must be balanced with adequate infrastructure. Therefore, Telkom has built and will continue to increase the capacity of the managed data centre. Telkom now owns and operates 27 Data centres, both domestic and overseas.
Telkom is also building a Hyperscale Data centre (HDC) with a total capacity of 75 MW and accommodating 10 thousand racks. A capacity of 22 MW is targeted to start operating in the second quarter of 2022 for the first phase. This data centre will be intended for Indonesian companies and foreign companies to global players. Telkom CEO Ririek Adriansyah said:
“TelkomGroup is currently consolidating our data centre business to answer the challenges of digital transformation. The regional data centre is a continuation of this data centre consolidation strategy and demonstrates our commitment to respond to customer needs and capture opportunities that will pave the way for our company to become a data centre player on a global level. These efforts require strategic partnerships with operators who have proven capabilities and track records. With its strengths and experience, Singtel is one of the strategic partners for Telkom in developing this regional data centre business.”
Singtel Group CEO Yuen Kuan Moon said:
“As businesses rapidly digitalize, and with the growing adoption of IoT, artificial intelligence, and 5G across the region, demand for high-quality data centres is on the rise. This partnership with Telkom is an important step for our data centre strategy, bringing together the prime assets, expertise, and networks of two market leaders in data centre operations in Indonesia and Singapore. As the largest digital economy in ASEAN, Indonesia is a strategic data centre market that expands our platform’s footprint to cover the three fastest-growing locations in the region – Indonesia, Singapore, and Thailand. The platform will support the digital transformation needs of customers wanting to deploy to Indonesia, and Indonesian businesses looking to grow beyond the country. We look forward to deepening our longstanding collaboration with Telkom to capitalize on the favourable trends and tremendous market opportunity.”
Apart from developing the data centre business, Telkom and Singtel are also exploring cooperation in implementing fixed and mobile broadband business integration. Telkom has started this business integration through the synergy of Indihome services with Telkomsel.
In line with the direction of the Ministry of SOE, the integration of the two businesses will make it easier for customers to get the best digital experience in using TelkomGroup internet services anywhere. This initiative will maintain TelkomGroup’s leadership in the broadband business portfolio, where Telkom will focus on the B2B segment and Telkomsel will focus on the B2C segment.
“With increasingly seamless broadband services, the flow and availability of abundant data will become a need, especially in the digital era through the development of e-commerce businesses, content streaming, big data, social networks, and the Internet of Things. We hope that this collaboration can add value for both companies, stakeholders, and the community,” stated Ririek.